Omaha daily bee., 1887-04-29
President Adams Details His Limited
knowledge OF Union Pacific Affairs.
NEVER LOOKED AT THE BOOKS.
Worthless Schemes Into Which the
Company Has Been Trapped
He Tells All About the
Branch Lines.


commission appointed by President Ceve.
land. Ex-Governor Pattison presided, and
Commissioner L. Ellery Anderson acted
asinquisitor Charles Francis Adams occupied
the witness chair. Adams said he had been
president of the Union Pacific road three
years, and knew great deal of the road and
its management and working during his
presidency, but knew almost nothing about
1t prior to that time. 1t was not his business
to look into the history of the road, but to post
himself on the consolidated road. He had
Sidney Dillon and +. l.. Ames had so con-
Quoted affairs that they were in debt to the
company. Adams had investigated these
his conclusion. Adams looked into the
Nevada, Omaha 4 Republican Valley and oil
OF the branches OF the Union Pacific. 1t was
general examination. Each OF them has
sas Pacific ana Denver Pacific and
the old. Union Pacific. Adams thought
the charter of the Union Pacific consolidated
very narrow. He did not suppose the road
proper had power to build a mile of branch
track under that charter. He is supposed to
be president OF all OF the branches. The &C.
q .er the are kept In
the commission would have to see Comp
troller, Mink, who knew all about it. He
never had looked into the books. lie relied
nrs o Ss benrsr soh fsnR e wss ns
built by Governor Evans of Colorado in 1882.
Adams had heard who made the bargain
transferring Governor Evans road to the
Union Pacific, but didn't know who it was.
There was strong competition for posses
sion of the road, and Gould, of the Union
Pacific Adams thought, succeeded in closing
the purchase for the road. Prices were much
stock in the road was turned over al an ex-
travagant price, as it turned out soon after
Colorado practically collapsing. The Evans
road was built to crafty a famous mining
where, holes had been dug in the
ground and called mines. "When the boom
collapsed, as every one knows it did," said
Adams, 1.-THE road collapsed. 1t has lost
Grating the road last year was $6O,000. 1t gets
Its business from travel to and from the
mines. The ups and downs in Colorado are
such t that =, do not think the future of this
mine, or new mining country, or new
mineral was discovered, 1t would again pros.
per. There Is no chance OF agricultural ad.
vancement in that region. Colorado busi-
purely mineral country produces. This
branch has been burden to us for three
years. When we bought the road there was
bonded debt held by outsiders OF 81 ,SOO, 600,
and these, together with the cost Of the ex-
tension to Leadyille and thence to Gunnison,
were provided for by the issuance of s4,-
OCUUUU i'll COHSOlIuateU DOuuS.
In this statement Mr.. Adams was aided by
Judge John w Dillon. who was spectator.
These bonds, Mr.. Adams said. are now in the
Union Pacific treasury. In the course OF his
testimony Mr.. Adams said he had found the
Council Bluffs street railway, a road about q
mile long, among the properties which
had become possessed of In former regime.
81 think this road bought this street railway
and believe we can make it saleable piece
Of property. 1t is good property to sell. The
Leayenworth d Topeka, running between
the Union Pacific and the Atchison g. Santa
roads, 1t had $3.50, 900 worth Of stock, not
far from hfty-tive miles in length. 1t was
bought to connect with Topeka and 1t barely
pays. Adams thought that this road was no
Kansas Pacific and Union Pacific are con-
rnected by the, Maphattan y Blue
Valley, four miles long, which runs
Se to ana hsS bean
only few months. 1t does splendid busi-
ness, being the connecting road between
Kansas City and Omaha: 1t was built regu-
was included in a pet scheme OF Clarke, who
resigned as general manager Of the Union
Pacific shortly after Mr.. Adams became
president Clarke didn't like to lose the
PACIFIC until, it, was discovered that the Mis-
souri, Pacific had obtained control of it, and
the Union Pacific was repaid every dollar il
had spent on the Belt Line. The st. Joe 4
A's Of the 0 Missouri was system Purchased Wsi'
tits twenty-five, miles long, running west
from st; Joe, and does an agricultural, bust,
ness. The lstOck was at 70, and was
bought in by the Union Pacific at that price
Adams wished to state that this stock was
bought at open market by Gould and Dillon,
iieyed, from careful scrutiny, that Gould and
Dillon had also been more than fair to the
company. He believed that they had per
bOnal interest in Union Pacific so strong that
they had always been rather OverscrupulOus
In their transactions with or for the COM
pany. The Salena, Lincoln & Western rail
way was constructed from Salena, Neb., by
the company. 1t runs into a country from
company came on the ground and proceeded tc
build competing line and the Union Pa
clic was, obliged TO build in self-defense
The or road is fifty miles long and cost about
Georgetown, Breckenridge q Colorado rail
way Is famous as the loop line engineering
curiosity. Originally i ran up the noun
mIS mics sns Of he mere Are
OF tourists visit 1t. Its annual business IL
nll0s10Oo 1t is valuable to the uni0I
Pacihc because it may represent 500, ,0O'
worth of traffic of the main line. Tn,
eighteen miles from the eastern terminus Of
the Union Pacific and isa splendid feeder
being in an agricultural district. The Kan
Bas Central connects with two other branche:
and thus indirectly with the main line. Ii
lisa poor property, but can possibly be made
profitable by widening the guage The
Omaha l. Republican Valley railroad con
sists of system OF $50 miles in Nebraska
ltruns through an agricultural country. lie
would like to buy 1t up at any time. Tn,
Union Pacific road was built in the most eX.
travagant manner possible. The brancl
system had been elaborated at an enormOu.
expense and every dollar of that none,
mis- hit Just as well have been Ifnid int
the pockets of the stockholders in dividends
The branches Of the road were paying, so /
would seem. for while they made dehcits, |
was fact that they fed the main line witt
business on which large pi pitts We're made
Adams had calculated that the Union Pacti
was receiving about S5,000,000 from il
branch system. The company had gone int
outside enterprises not always successful
The road was driven into schemes to develo
this or that Industry by the pres
and people. They clamored and erie
that the road was not enterprisn
and was ungrateful II 1t didn't go into thes
schemes, and then denounced the road 10
recklessness when one of them failed.
Replying to the question OF ex-GovernO
Pattison. Adams stated that he did not kno'
OF an instance where q director, officer G
employe OF the Union Pacific had had an
interest in any contract with the Union Pi
cifc. Tho last dividend of the road was d,
~lu In arrt,, 4,